Scatec Reaches Financial Close on 273MW South African Solar
- Scatec Solar has closed financing on 3 Grootfontein solar projects in South Africa with a combined capacity of 273MW. Construction to begin Q1 of 2024 and estimated to power 100,000 households. Financed by equity and $241m of project finance debt.
Scatec Solar has announced that it has achieved financial close for its three Grootfontein solar projects, with a combined capacity of 273MW, in South Africa. The projects were awarded after the fifth bidding round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Scatec will have a 51% equity stake in the projects, with H1 Holdings, its local Black Economic Empowerment partner, owning 46.5% and the Grootfontein Local Community Trust 2.5%. Construction is slated to begin in the first quarter of 2024, with expected completion in 2025. The projects are estimated to cost $270 million and will be financed by equity from the owners and $241 million of non-recourse project finance debt provided by Standard Bank of South Africa. Once operational, the solar plants will provide renewable energy to approximately 100,000 households in the region.
What are the Finances for Scatec Solar's Grootfontein Projects?
- Projects will be completed in 2025
- Cost of projects estimated to be $270 million
- Standard Bank of South Africa to provide $241 million of non-recourse project finance debt
- Scatec to own 51% equity stake in projects, H1 Holdings to own 46.5%, and Grootfontein Local Community Trust 2.5%
- Construction to begin in first quarter of 2024
- Projects will provide renewable energy to approximately 100,000 households in the region
